EFFECTS OF SOCIAL MEDIA MARKETING ON ORGANIZATIONAL

PERFORMANCE A CASE STUDY OF KENYA WOMEN MICROFINANCE BANK

(KWFT)

INSTITUTE VISION EMPOWERMENT TRAINING INSTITUTE

STUDENT: VICTOR MUSEMBI KITONE

INDEX NO: 20401216036

RESEARCH PROJECT SUBMITTED IN PARTIAL FULFILMENT OF THE

REQUIREMENT FOR THE AWARD OF CERTIFICATE IN SALES AND
MARKETING OF KENYA NATIONAL EXAMINATION COUNCIL

SERIES JULY 2019

DECLARATION

Declaration by the student.

This research project is my original work and has not been presented in any institution of

learning. No part of the project may be reproduced without the permission of the author or

Vision Empowerment Institute.

Victor Musembi Kitome

Sign……………………………………Date…………………………..
DECLARATION BY THE SUPERVISORS

This research project has been submitted for Kenya National Examination Council with our

approval as Vision Institute Supervisors.

Sign………………………………………..Date…………………………………………………..

Mr. Edwin

Lecturer
DEDICATION

I dedicate this proposal to my parents, sisters and brothers for their continuous support

throughout the period I wrote this proposal and especially my parents because without them I

would not have any reason whatsoever to work so hard. It is through their prayers, guidance and

the trust they had in me that this project became a success.

ABSTRACT

The purpose of the study is to find out the influence of social media market in our society today.

The objectives of the study are to investigate how technology impacts our society as a whole, to

determine the importance of technology in an organization. The study will also adopt a case

study design where the senior managers and the junior employees of the government will be used

for the study. Simple random sampling and purposive sampling will be used in the study.

Findings of the research show that most of our countries will still use manual ways of data

saving and recording which is time consuming. It is through the fact that researcher opted to

conduct a study with the aim of developing a social media marketing system as a solution.

The system will capture and make more marketers strong to produce more products in the

organization through robust data collection, secure and protected data as this will eliminate paper

work hence increasing efficiency.

EFFECTS OF SOCIAL MEDIA MARKETING ON ORGANIZATION PERFORMANCE,

A CASE STUDY OF KENYA WOMEN MICROFINANCE BANK (KWFT)

Social media has been ingrained into our society today to such an extent that it is virtually

impossible for people to take you seriously if you are not on any social media platform.

Everyone on social media, young, old, rich, poor is always in frenzy when it comes to socializing

online. There are many social networks to choose from. Some of the popular ones include

facebook, Twitter, Snapchat, and Instagram. As the popularity of social media keeps spreading

all over the world, there have been mixed feelings about these networks and how they impact the

youth. There are various ways on how the social media affects the youth and under this we have

to look at both the negative and positive impacts of social media on the youth. Through

interactions, young people can share ideas through acquiring information and also exposed to

many opportunities out there.

The goal of our social media experts is to get our brand. Web marketing in USA manages social

media campaigns and finds customers for our clients by adding real targeted followers on

facebook, Twitter besides the obvious potential or new organic traffic. Social network marketing

is an invaluable tool of its word of mouth marketing. In the current area of global industries of

restructuring of marketing on organization microfinance is a category of financial services

targeted at individual level and small businesses.

In Nigeria, cases of fraud have been reported. Dubious bank promised their clients outrageous

interest rates. As Margurite Robinson describes in the Microfinance could provide large scale

outreach profitably and the 1990s microfinance began to develop as an industry. This made
possible by developing a unique system to automate product procurement operation in the

country in the coastal region of Kenya.

Microfinance in India has grown at tremendous pace in recent years. Achieving significant

outreach amongst the poor households across the country. According to the status of

Microfinance (2011-2012).

There are about 1,000 Microfinance in the country working in various legal forms.

1.2 STATEMENT OF THE PROBLEM

Due to the rapid increase in quantity and quality of goods and services in the suppliers, the

employees encounter a lot of problem which include the following:

 Poor communication due to poor network services.

 Major errors in calculating payments due to manual procedures.

 Poor track of loans from investors.

 A lot of manual work that slows down the pace of operations.

It is argued that these problems can be solved by speaking in one communication and improve on

our communication technologies. This project was aimed at developing a system to the

organization that will be able to eliminate the problems and reduce the operation costs thus

maximizing the profit.

1.3 AIM OF THE STUDY

The aim of the study is to ensure the effects of social media marketing on organization

performance in Kenya Women Microfinance Bank has become one of the most upcoming

industries to help clients improve on the profits.

1.4 GENERAL OBJECTIVES

1. To explore the impact of social media on people’s relationships especially the family,

gender and friends.

2. To examine how social media has impacted upon key issues such as politics and privacy.

3. To explore the way social media has been used within institutions such as Education, the

State and Religion.

4. To examine other possible welfare benefits which in practice have ranged from the use of

social media.

1.4.1 SPECIFIC OBJECTIVES OF THE STUDY

The following are specific objectives of the study:

1. To find out how awareness of goods and services affect organizational performance.

2. To investigate effects of competitive advantage on organizational performance.

3. To establish the effects of cost reduction on organizational performance.

4. To determine the effect of satisfaction on organizational performance.

1.5 RESEARCH QUESTIONS

1. How is awareness of goods and services affecting the organizational performance?

2. How to investigate the effects of competitive advantage on organizational performance?

3. What are some of cost reductions on organizational performance?

4. What are the effects of satisfaction on organizational performance?

1.6 SIGNIFICANCE OF THE STUDY

The significance of the study is that many users use facebook as a source of communication thus

resulting to change of platform settings accordingly to increase of participation. The really great

thing about social media from a marketing perspective is that it allows clients to build personal,

emotional connection with your prospects likely to go to your company for what you need. The

personality with your customers is great through social media through marketing perspective to

your customers because you become trusted through interacting on social media.

1.7 THE SCOPE OF THE STUDY

The study focuses on the social media marketing on Microfinance performance to the clients. It

is aimed at developing a marketing system to automate the items procurement procedures on

women microfinance. It is expected that the new system will improve on the operations of the

clients and therefore enhancing the management and service delivery. The study is limited to

only women microfinance because the preliminary investigations revealed that it was only one

with good researchable issues.

1.8 LIMITATIONS OF THE STUDY

Protection of users’ privacy limits data collection. Even though social media may seem like a

very open space, social networks themselves limit amount and specifically of data that you can

collect to protect the privacy of its users.

Data is fragmented by platform. You might know how many dislikes a Youtube video has

received and the same video posted on Facebook would have no dislike data available.
It takes good analysis on the part of marketers to trace a link between social media. The path to

purchase from social media usually used to raise awareness and educate customers is often an

indirect process and customers may have to be channeled through well known sales and

marketing funnels.
CHAPTER TWO

2.1 INTRODUCTION

According to Kamel Boulos (2007), the second incamasion of the web also called “social web”

because in contrast to web, its content can be more easily generated and published by users.

After reviewing social marketing networking Erlandson (2008) social networking refers to sites

such as facebook where users use/set up their profile to create formal connections to people they

know.

2.2 THEORETICAL REVIEW

Creating audience awareness when there is a need to promote any new idea, person or behavior,

the first step is to create awareness to such a new concept or individual exist. Awareness is

created by having all available channels at one’s disposal like news media and even new media

like the internet. One of the easiest ways to create awareness is having a saturation television

campaign. The benefits of using newer media on the other hand is that the wider range of

audience can be reached out to. The use of internet help reaches younger audience who may no

read newspapers and depend on television information.

Targeting the right audience when disseminating message it is important to first identify the

audience that requires the message and then finding the most efficient means of reaching them

with the message. This helps cut the cost and ensure higher level of audience penetration. It helps

old people using internet to spread information would be a waste of time as most elderly people

to not use computers. A more effective way would be to use radio and television to get the

message across.
The internet has created a broad playing field for business competition. Social media plays an

important role in business plan, helping to bring business and customers together in innovative

ways. As a small business owner, you may have limited resources making social media even

more advantageous.

Market your business. After you create your business niche that sets you apart from your

competition, use social media avenues to drive your message out to the public. The special

aspect of your brand is what your business provides better than any other business. Which

business accounts as websites such as Facebook, Twitter, you can professionally present your

company and its message for customers, peers and potential employees to see.

Related customers use social media to create a place you can interact with customers regularly.

Not only will this increase your visibility within your industry but it can also help to create a

sense of community for your customers. Regular interaction with customers can keep them

engaged with your company and foster deeper feelings of loyalty. Use social media to answer

about your products and services and to promote your expertise.

Attracting quality staff presents your company as a winning place to work by promoting your

business on social media. Create a positive representation of your business with social media

accounts. Encourage your current employees to network to promote your business as well. You

could even use social media to connect with universities and other professional organizations to

increase your exposure and recruit high quality individuals to your business.

Assumptions about environmental characteristics. Asset specifically Williamson defined asset

specifically as a durable investments that are undertaken in support of particular transactions, the

opportunity cost of which investment is much lower in best alternative. Use or by alternative
users should be original transaction be prematurely terminated. Transaction cost theory focused

rather strongly on asst specifically and its role in determining how to better organize exchanges.

Transaction cost theory is part of the new institutional economic research tradition. The main

focus on TCT is the definition of the determinants of coordination through markets or

hierarchies. In this sense, the boundaries of the firm should be a function of the governance

structure especially (Holmstrom and Roberts, 1998) when we consider that this governance

structure would assure the optimal adaptability of the firm to change in the condition of supply

and demand.

The main research question that transaction cost theory seeks to address is why economic

transactions are organized in the way that they are in the modern society(Williamson 1994)

specifically why are some economic transactions internalized within the boundaries of firm while

others are procured to external parties. Why do firms do what they do? As recently as exposed by

(Madhok 2002) why don’t firms do what they don’t? The general conclusion is that activities are

internalized inside the firm when there is some form of market failure, and most notably market

failure of intermediate inputs.

Since the late 1990, several different types of social media sites have been launched. Each social

media site provides a different type of service and purpose to its users. Overall, sites powered by

users and user-generated content can be classified based on their purpose. Social networks are

where users can build individual pages and be able to communicate with friends. According to

no.of popular social media sites, facebook the number of active users. Based on the number of

users, facbook would be the third largest country in the world. Such intense and hyper personal

communication (Walter 1996) of usage behavior and number of users indicates that facebook
users enjoy an overall positive experience from its usage behavior and number of users indicates

that facebook users enjoy an overall positive experience from its usage. Continual voluntary

usage of such social sites and improvement in performance of social media will continue if and if

it leads to something valuable, tangible or intangible for its users. (Brethower 1995).

2.3 EMPIRICAL REVIEW

Social marketing in media is becoming a phenomenon that can longer be ignored and needs to

form part of any corporate marketing strategy. But the rules of the game are very different from

both traditional and web marketing.

Public relations and Brand Awareness spreads news and important information about your

business/brand or product to a broad audience who are likely to share it to their own networks.

Building customer loyalty gives consumers a reason to interact with you by offering promotions,

coupons or information. Make your network feel valued and they will value you. Managing your

reputation hear what people are saying about you and your business and most importantly let

people know that they are being heard. Establish trust shares valuable information with your

network that shows you are knowledgeable in your field and people will seek more information

from you. Through increase search visibility social media plays a big part in the new generation.

Your activity in social media can enhance your visibility in major search engines.

You think you know who your competitors are but you might not be seeing the full picture. This

depends on how you define your competitors. You should be tracking competitors from both of

these categories on a regular basis, so you can learn which new content ideas are delivery

mechanism your competitors are investing in. After you have identified the different competitive
set(one for direct competitors, one for audience competitors) to you want to track, its time to set

a baseline.

Run an easy analysis to understand how you stack up against each competitive set and zero in on

the specific post and campaigns which are driving engagement and audience growth for your

competitors. Be as specific as possible when setting your goal. The more specific the goal, the

more likely you are to hit it. Take a look at your past growth and make a goal to replicate or

exceed that growth percentage so that you stay in the lead.

By viewing the conversation around your industry topic across multiple social channels from

facebook to Reddit you discern whether you competitors are defining and dominating the

conversation from an earned social perspective. In other words, how do people really feel about

you and your competitors? How do you match up when it comes to brand health.

Customer service on social media sites are a great way to provide customer service without

spending as much as you would for customer services via phone. Depending on the size of your

business, hire or several employees to respond to comment and messages. Social media doesn’t

cost anything to use, saving you from having to pay for multiple phone lines and answering

services. If used effectively, using sociall media can cut down on the number of employees you

need for customer service saving you more money.

Brand recognition is an important part of running a business. Consumers tend to gravitate

towards brands that they recognize rather than an untested, unknown entity.

Keep in touch with your customers and build your brand recognition using social media. Put out

regular Facebook posts and tweets to keep you business fresh in people’s minds and grow a
bigger audience. This will also be a great way to get free feedback on what customers want and

expect from your business. Use your social media account to build a community of consumers.

Facebook is on life satisfaction may apply to social media in general as well. Negative

relationship between social media use and life satisfaction such as social comparison. Most of

these studies are cross sectional and cannot investigate mediation. At first, explanation for a

negative relationship between social media and life satisfaction can be found in the social media

comparison theory (Festinges 1954). This theory argues that individuals have an inherent drive to

evaluate their opinions and abilities.

Social media thus gives the opportunity to obtain feedback on yourself by means of comparing

yourself and your life to that of others, which in turn can impact life satisfaction. Appel (Garlach

and Crusius 2010) showed their review study that there is a positive relationship between the

amount of time spent on social media and the amount of social comparison. Social capital is

defined as the benefit from relationship with other people such as a advice, information or social

support (Coleman 1988). Due to the interactive nature of network sites, it has been argued that

social, media can enhance social capital.

2.4 SUMMARY AND CONCLUSION

Social media is a really convenient and important communication network for all the people

nowadays. We can use to know friends and keep contact with friends that come from different

countries. We can also shares ideas so quickly so that all the things could develop so fast because

could tell us their ideas and could improve it immediately. We also learn new things on social

media by watching and reading the things that people share on social media. People could also

sell things on social media freely which could reduce the expenditure of advertisement.
Social media changed or life so much. Our life became more convenient because social media is

very useful tool for us in the 21st century. It could help us to improve our life. It we could use the

social media smartly having social media will become a good change for us.

2.5

MANAGING DIRECTOR

RESEARCH AND DEVELOPMENT

PRODUCTION MARKETING ADMINISTRATION AND FINANCE

MARKETING SERVICES SALES SERVICE S

Product Management - Sales Management

- Marketing Research - Distribution

- Forecasting - Stock records

- Promotion - Field sales

- Advertisement - Management technical

- Budgeting - Management representatives

- Control administration - Sales and invoicing

2.5.1 OPERATIONAL DEFINITION OF TERMS

a) Awareness

Brand awareness is a level consumer consciousness of a company. It measures a potential

customer’s ability to not only recognize a brand image but also associate it with a certain

company’s product or service. It’s best spread through both inbound and outbound efforts.

b) Competitive Advantage

This refers to the ability of a company to deliver products and services or benefits either at a

lower cost or an improved level than other players in the same industry.

a) Satisfaction

Customer satisfaction is a business plan term which is a measure of how products and services

supplied by a company meet or surpass customers’ expectations.

CHAPTER THREE

3.0 METHODOLOGY

The central aim of this literature review was to identify trends in qualitative and mixed methods

approaches used in the emergent field of social media research. The review descriptive and

follows an integrative synthesis approach which attempts to summarize the contents of multiple

studies and minimizes any interpretation on the part of the reviewer.

During the presearch phase, key words and databases were selected based on combination of (a)

strategies used in prior literature review (b) test searches with candidates key words, filters and

databases. Some of the researches focuses on platforms e.g. Facebook, Twitter and Youtube.

3.1 RESEARCH DESIGN

It is difficult to escape the onslaught of attention that has been given to social media in the

context of research design. It is almost impossible to pick up a trade publication and not be

struck by the breadth and near frenzy of discussion among researchers concerning social media.

For many Facebook, Twitter, online communities and the like are virtual fountains overflowing

with consumer content just waiting for researchers with their baskets to scoop up every juice

detail. As someone recently put it, social media provides a gold mine of information just a click

away.

These characters are eager to promote and defend social media as worthy components of

research design. The argument goes to social media revolutionizes the research process by

enabling fast and cheap access to a data while bringing creativity and fun to an otherwise too

serious discipline. The argument extends not only to information gathering but to analysis as
well as digging around in social media results in lots and lots of text making it ideal for computer

based content analysis.

This discussion is not about traditional vs new research methods. The idea that traditional

qualitative and quantitative research designs are stale and inappropriate in this modern overly

social culture. Transparency is only achieved to the degree to which the researcher can account

for the variability impacting results and states with some confidence the attitudes and behavior

among research participants based on a knowledge of their framework within the sphere of

interest.

Public information and content has been around us everywhere. For a long time, letters to the

editor in print media, callers to call in radio or television shows and researchers have always had

the opportunity to utilize these resources. It is not about grabbing comments and ideas wherever

they can be found from the most extroverted segments of society then throwing together and

calling it insight.

3.2 POPULATION

Socializing networks are now so well established, that there is a core top five social networks

that don’t change much from year to year. But as well as in this post the most popular social

media sites vary a lot by level of usage in different countries and demographic. Understanding

these different in popularity of different social networks is really important when targeting

specific audiences when comparing the most popular social networks. It’s best to review them by

active account usage not the number of user accounts. We will see this summary that some social

networks are growing more rapidly than others while some are now on the decline.
Each year, near the start of the year, we social update their massive global compendium of stats

which gives download for presentation. It’s particularly interesting how for some countries are

diverging in terms of social media use and surprising what Eastern countries are actually lagging

a fair way behind in adoption rates. Some of the key takeaways from the Global Digital Report

is:-

a) The number of interest users worldwide is up to 9.1% year on year.

b) The number of social media users worldwide is up to 9% year on year.

c) The Number of mobile phone users is up to 2% year on year.

3.3 SAMPLING FRAME

One of the most significant current challenges in large scale online social network is to establish

a concise and coherent method aimed to collect and summarize data. Sampling the content of an

online social network plays an important role as knowledge discovery tool.

The main challenge faced when collecting of data science is the lack of a standard methodology

to collect and analyze data set. Thus the main obstacles that the scientist face is as follows:

(1) They do not know what sort of data they need.

(2) They don’t know how much data they need.

(3) They do not know if this data is private.

(4) They do not know what critical questions they should be asking.

A central hypothesis in this study is that in order to advance our quantitative understanding of

social interaction is not possible to get by with incomplete data. It becomes necessary to obtain
representative data. Therefore the aim of this study is to propose an algorithm to discover and

collect emerging global trend on Twitter. The specific contributions of the study are:

a) This research is intended to determine the extent to which random walks can be

combined by using an alternative version.

b) This paper provides a series of random strategies based on random walk models to

sample small but relevant parts of information produced on Twitter.

3.4 SAMPLE AND SAMPLING TECHNIQUE

Sampling is one of the core techniques in primary research. In traditional opinion research

sample is the thing. It’s not just that its critically to have a valid sample to have useful research.

But for social media measurement, most people don’t think of sampling as a part of the problem.

Social media is a generally considered to be more like web analytic where we analyze the

compete for all set of behaviours.

Sampling is surprising important at all several levels of social media measurement and

limitations on sample have a powerful impact on what types of analysis are appropriate with

social data. So it may be surprise that the role of sampling in social media was on the most

interesting parts of my panel.

So the very top to the social media measurement process there is a sample. It’s a sample that

designs to be representative. Instead its designed to be a comprehensive as is practical most

vendors choose to collect what they view as the largest feasible collection of information.
If you want to do competitive analysis you need to be sure that you set up every competitor in

exactly the same way. If you feel a build a rich profile contains your product names and sub-

brands.

3.5 INSTRUMENTS

Use of internet search engines and professional social media have brought a great development

in the way of rapidly connectivity with the professionals and the researchers all all over the

world in the last decade.

Communication through communication its easy to bring up your products and services to the

clients and this helps you to increase on your sales.

3.6 DATA COLLECTION PROCEDURE

Social media such as (blogs, social networks, online, microblogs) has become one of the major

data sources for quantitative comm. Research over the past decade. Social media harvesting is a

forth primary method of data collection in social science. The increasing social media use has

generated rich information online that is achieved instantly on web researchers.

Sampling seeds refers to the initial case of a sample under study. Sampling for traditional

communication research e.g survey or content analysis usually does not require seeds because

the sample are small enough to be collected.

 SELECTION OF SEEDS

RANDOM PURPOSIVE

PROBABILITY SAMPLING NON PROBABILITY SAMPLING

EQUAL
SELECTIVE EXHAUSTIVE

UNIFORM

RANDOM WALKS BREADTH FIRST SEARCH

3.7 PILOT TEST

The details to demographic of respondents under the study.

Demographic variables Levels No. of Respondents

Gender Male 660

Female 340

Age 18 or less 78

19-25 675

26-30 154

31-35 58

36-40 24

Occupation Self-employed 85

Services 266

Others (Housewife) 2
3.8 DATA PROCESSING AND ANALYSIS

The data collected filters on the sold homes by the number of bedrooms.

BEDROOMS SALES AVERAGE MEDIAN MAX PRICE

0 80 342,319 331,250 635,000

1 563 485,861 440,000 4,000,000

2 1,577 659,992 599,000 3,500,000

3 1,937 804,226 734,250 7,500,000

4 892 963,829 822,475 11,000,000

5 250 1,175,175 973,500 5,830,000

6 48 1,267,568 1,035,000 6,000,000

7 8 1,839,688 1,625,000 4,595,000

8 7 1,129,136 975,000 2,375,000

9 2 1,357,500 1,357,500 1,850,000

10 1 785,000 785,000 785,000

CHAPTER FOUR

CONCLUSION AN D RECOMMENDATIONS

4.1 INTRODUCTION

This chapter provides summary of the research conclusions and recommendations.

4.2 CONCLUSION

Embracing on social media marketing is becoming inevitable requirement in the current age for

any commercial exploit to make its activities more efficient and maximizing profitability. Any

enterprise not making up social media marketing will be a big disadvantage. This is because they

will lack the competitive edge that the clients offer for any business enterprise and consequently

to directly enhance the welfare of the poor.

However the reap of the full benefit of the marketing on social media revolution and reduce

poverty, countries need to address the main impediment to economic development. Improving

infrastructure, opening up markets and improving the education levels for all are fundamental to

economic development as well as success in exploiting the economic opportunities and working

towards attaining Vision 2030.

 4.3 RECOMMENDATIONS

It is no longer a question whether organizations require to do business through media to assist

themselves to manage their business and profits but this will actually value their organizations.

There are various recommendations emanating from this study:

1. Look to the industry standard.

2. Know your audience.

3. Build community engagement.

4. If you have the capacity, you should use it.